I’ll keep it quick and short. I’m a college sophomore in LA studying Computer Science and Business Administration. I was wondering if I could get some guidance on getting a credit card and building a score in college. I did some research on the internet since I had no damn clue about all of this and the only two things that I know is that the card should have a low limit (for college kids) and it shouldn’t have an annual interest rate %.
You mean an annual FEE - all cards have interest rates, although there is a grace period and you won’t pay interest if you pay in full by the due date each month.
If you don’t have a job or someone to add you to their credit card, start with your own bank. You may have to have a secured card at first, which means you’ll have to deposit a certain amount ($500 or $1000) and that will be your credit limit.
Just curious as to why you feel you NEED a CC in college? If you have a job, it may be easier to get a CC, but you need to be sure to pay it off in full every month. One way that helped my kids (but I’m not sure how much it helps any more) was having my kids added as authorized users for a CC with a lower limit on one of my accounts. Neither of my kids had any trouble getting their own CCs.
The link you noted had good options. I would get one that had no foreign exchange fees if you have any plans on international travel. My daughter was on our credit card for several years (emergency use only). She also got a credit card from her bank. She uses it as a method to establish credit. She spends about $30 a month on it. She pays it in full every month using auto draft. She is very disciplined so it’s not a good idea for everyone.
Hey! So sorry I couldn’t get back earlier. Just to add to that. I’m a US citizen (was born here) but my parents aren’t and they don’t live in the states as well. So I basically have no one to dependent on per se for a credit card. Do the banks usually permit to add dependent CC on cousins/relatives CCs? I basically just want the card to establish a credit. In fact, I don’t even plan to use it for expenses but for just being smart about building my credit during college though it.
Thanks again for all the help.
Sincerely,
from a kid who knows nothing about how this works
My Ds each got a discover card in your situation. No annual fee and the initial limit was less than $1000.
To get the card in their name only, I had to send a letter from the school saying they were in good academic standing.
You find out every month was your credit rating is when you get your statement. However, you have to use the card occasionally in order to get a credit rating. Just pay it off in full each month. It is good to establish credit in this way. One of my daughters has two roommates who have no established credit and they both have credit cards they just don’t use. That is a good strategy but it doesn’t give you a credit score.
You are very smart to think about building a solid credit record. The advice above about a card tied to a bank account is very sound. You should use it, however; don’t just carry it. Although it may seem counter-intuitive, the way to build a good credit history is to borrow money AND then pay it back. Moderate use of a credit card and prompt payment of the balance is a good step. I like the Capital One card if you can get one. I think they have some student-oriented options and they do not charge a foreign transaction fee. Another way to build good credit is store accounts. Buy a TV or a futon or some such. Store accounts will often waive interest for a few months. Make the payments and then pay it off. Solid record. D got this advice as a senior; you’re ahead of the game.
I think just paying on time-- rent, utilities, ccard will help build credit without needing to borrow. I and my kids have excellent credit. Kids have NEVER borrowed. We just had a mortgage and I had a very small ed loan.
Thank you so much for your suggestions CC community. This thread is a useful place for any college student to start looking for introductory credit card advice. I’m definitely looking into my options now and will follow up with a few more questions, if I have, very soon. Thanks again and yes that means Southern California (USC). Lol, I don’t know why I put it up there, made no sense. Sorry!
If you have an account at the USC credit union, I believe you may be able to get a credit card there. I believe anyone can allow anyone else to be an authorized user, if you have a relative who would trust you to be responsible and not lose or make unauthorized charges you don’t pay off promptly, that could be an option.
I would suspect someone at the credit union could sit down and talk to you about how to build your credit, but I’d really NOT recommend borrowing just to boost credit–paying off your bills and credit cards in a timely manner boosts credit just fine, as well as having a job and a good job history.
With the credit reforms, I’m not quite sure how much being an authorized users of someone else’s credit card helps your credit history any more. I believe I added my kids as authorized users when it was helpful to their credit history.
Sigh. I’ll repeat and then shut up. Borrowing a small amount on a consumer loan – specifically, for something you plan to buy anyway and can afford – is one recommended tactic for QUICKLY adding to your credit score. Don’t take my word for it. Don’t take Himom’s contrary views as gospel either. I heartily endorse her suggestion of checking out the USC credit union. Cheers.
Happykid got a secured credit card through her credit union. The initial limit was $500. She uses it for a few things every month, and pays the bill off right away.
Talk with your bank or credit union about a secured credit card. You will need to leave the security amount in a special account at that bank/credit union. You should not have to pay any annual fees. If the institution wants to charge you a fee on top of the security amount, look around and find a different bank or credit union.